An iPod Touch - a Frugal Investment?

I've wanted an iPod for a long, long time. I actually won a first generation Nano from Blingo a long time ago, but it wasn't flashy and it only held (only! ha!) 2 gigs of music (which was, admittedly, plenty). I also bought an Archos mp3 player that was big and clunky but that held many gigs of mp3s, and that served me well for a few years. But I never had a "real" iPod. They were just too expensive to justify.

I also have been lusting after various smartphones including, of course, the iPhone. My husband and I have the most basic cell phones and plan that we could get - no web, no camera, and we pay 20 cents per text message. And I don't see that changing any time soon.

My birthday is in November, and some family members gave me money as a gift. I also had about $120 in Amazon credit from Swagbucks, from MyPoints, and from a few other sources. I was just spending a little bit here and there on little things - books (and have I mentioned lately I have almost 1600 books?), video games, and some gifts. Finally, I decided to splurge and I spent all that credit and bought an iPod Touch - 3rd generation, 32 gigs. It cost me about $140 out of pocket in the end.

So first of all, I wanted to point out that while it can take a while, using programs like SwagBucks and MyPoints really can add up over time. Second, well, I've found that my iPod Touch has satisfied a lot of what I wanted with a smartphone, but without the monthly expense. I installed the following apps (which can be found by searching the app store):

TextFree Lite and TextPlus: Both of these programs allow me to text my friends for free, rather than for 20 cents a pop. Not bad! I love texting, but I was holding back because the money really would add up on my monthly bill. Now I can text as much as I like!
iCall: By choosing the free call option, I can make completely free five-minute calls with my iPod (as long as I'm at a WiFi hotspot). I just have to listen to a short message. I have WiFi at home, so this is a handy option if I want to save minutes! If I really wanted to make my iPod into my only cell phone, I could buy a plan from iCall for $10/month, but for now that's not feasible.
Skype: For longer calls without a monthly plan, I have Skype. I'll need to load my account with money, but after that, calls will be about 2 cents/minute. Again, handy if I want to save my cell phone minutes. Also, with Skype, calls to another Skype user are free.
Fring: I can use Fring to chat with friends who use Gmail or iChat (or basically any other chat program, although I don't use anything else). Handy!
Evernote: With this app, I can capture web pages on my computer and sync them to the iPod. Then I can set it so I can view them when the iPod is offline. My plan is to use grabs from CouponMom so I can have an easy list of what's on sale and what coupons I have (and to save paper by doing so).

As I've touched on above, many of these apps require WiFi, which means that unlike my iPhone-using friends, I can't access everything from, say, the car or the middle of a store. But there are also hundreds of hotspots for free WiFi, and while I'm at home I have it as well. It's a limitation, but it can be managed. And a program like Evernote definitely helps when there is no Internet access around.

Look, an iPod is not cheap, and it's not frugal in general. But if you use it wisely, it can save you money in little ways. Plus, well, it's just a fun toy. And there are TONS of free apps in the app store - from games for my daughter to tools to just plain silliness. And all of the above apps are, as far as I know, available for the iPhone too, so you can save money on your monthly bill if you want to.

Have a suggestion for an app that you love? (Especially a free one?) Let me know!

Read this far? How about checking out my Examiner articles on how to save money on groceries! I think you'll find a lot of valuable information there that can help you in 2010!